The report examines the development and management of Securities Lending within ANZ and its relationship with Brokers including the Opes Prime group.
The aim of the review is to address the legitimate expectations of ANZ’s shareholders, its customers and the wider community, that the way in which ANZ conducts its business should meet the highest standards of ethics and business practice.
The report delivers on a commitment to provide an open and transparent account of the Bank’s involvement in Securities Lending, to examine accountabilities within ANZ and to identify and undertake all necessary remedial actions.
ANZ recognises however that there remain broader legal issues to be resolved, particularly those associated with the losses incurred by the clients of the Opes Prime group. There are also significant impacts stemming from the failures of the Opes Prime group and Primebroker Securities on the lives of their clients and their families.
ANZ continues to believe its Equity Finance relationships with Brokers were undertaken on a strong legal foundation and in good faith, and this report does not seek to address these relationship issues directly.
ANZ does however recognise that the legacy of its involvement in Equity Finance may well be with the Bank for many years through legal cases that it will continue to defend and also the impact of these issues on its reputation.
This report has been presented to the ANZ Board, which has accepted the findings and fully supports the remediation program described within it. This report has also been provided to the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).